Gfc Business Ethics

a) Unethical acts that GFC engage in are-

• False advertising that it sells organically grown food.

Though case study doesn’t say it expressly, but the company must be charging more to customers for organic products which is scamming.

• Selling the genetically modified corn which can cause serious illness, paralysis and even death.

• Not disclosing or giving warning of potential threat.

• Being a publicly held corporation it used shareholders’ money for the wrong purpose.

b) GFC used the virtue ethics theory to justify its ethical actions because this theory doesn’t deal with solution in case of ethical issues, it focuses on a person’s inherent character without considering the consequences and any rules or principles.“One of the weaknesses

• Find an alternative use for it such as using it as fodder or extracting corn oil or corn starch, only if it’s fit for consumption- animals/humans after being processed as oil, starch or fodder.

• There are several other uses of corn in which it’s not consumed like in production of match sticks, GFC could have sold it to those companies, it would have fetched lower price and even suffered financial loss, but that would be an ethical approach of dealing with the situation.

d) If I was the decision maker, first of all I would not sell the genetically modified corn as my company is known for selling organic produce. If the corn is genetically modified and safe for human consumption, I would sell it by not giving it an organic label so customers would be clear that it isn’t an organic product.

After discovering, that it’s not fit for human consumption and can potentially lead to serious illness and death, I would not sell it in the market, but rather look for alternatives discussed in answer above like using it for extracting oil, starch, animal feed or selling it to other manufacturing companies who produce products using corn, but not for consumption purposes like production of match stick. Since, I have a publicly traded company I will disclose the issue in the financial statements as this would impact company’s